On 9 October 1998, an Arbitral Tribunal handed down its Award regarding the first stage of an arbitration between Eritrea and Yemen. The Award determined, firstly, the scope of the dispute between the parties and, secondly, the sovereignty of small islands, islets, rocks and low-tide elevations sprinkling in the Red Sea between the respective coast lines of the two states. Whilst closely examining concepts raised by the parties such as historic title, the Tribunal was ultimately swayed by factors of geographical appurtenance, recent demonstrations of governmental authority and functions of state, and, to a lesser extent, the area's legal history. The Award contributes to the body of law on territorial sovereignty and to an understanding of the role of arbitration in the peaceful resolution of disputes.